Holding Title And California Estate Planning

By Earnestine Raber


When involved in California estate planning the nature of one's assets and how title is held to those assets is one of the critical matters in making the best plan. Thus, before taking or changing title to an asset, one should know and understand consequences, including taxes against proposed changes. This is one of the places where an attorney can provide the needed advice.

Individuals who are married or in a relationship with a registered domestic partner should understand assets earned by either partner while in the relationship and residents of California are considered community property. A written agreement can convert separate property to community property or community property to separate property as long as the agreement confers with state law and signed by both parties. These steps can result in serious tax consequences that should be understood as a part of estate planning Palo Alto locals should consider.

Interest in properties owned as tenants in common pass to the person named in a co-tenant's will. This rule applies to all owners, whether single, married or in a domestic partnership. The death of a co-tenant in these properties can cause significant changes to the other co-tenant and in the handling and management of the property.

Property may be held with joint tenancy with right of survivorship. Regardless of whether the co-owners are married, they can also hold a property title with this designation. The beauty of this type ownership is that the death of one tenant simply passes ownership of the property to the surviving tenant and is not affected by the will of the deceased person.

Property may also be held as community property with right of survivorship. This type of deed may also be used by those who are in domestic partnerships or those who are married. Death of one owner will transfer property to the second. Survivorship deeds are unaffected by one's will.

Married couples and domestic partners may consider the option of jointly holing a property title as community property. This allows the spouse or partner to distribute his or her portion according to the will. Right of survivorship does not apply.

At times it is better for the property to be held in trust. California trust administration can involve complex legal problems. Often it is helpful to find a lawyer who is trained in these situations. Property planning is one of the best ways to ensure heirs are cared for and ones desires to support charities are met.




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